Press Releases

Applied Digital Reports Fiscal Fourth Quarter and Full Year 2025 Results

DALLAS, July 30, 2025 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital" or the "Company"), a designer, builder, and operator of next-generation digital infrastructure designed for high-performance computing (“HPC”) applications and data center hosting (“Data Center Hosting”), reported financial results for the fiscal fourth quarter and fiscal year ended May 31, 2025. The Company also provided an operational update.

During fiscal year 2025, the Company determined its Cloud Services Business met the criteria for held for sale and discontinued operations. As a result, the operations of the Cloud Services Business have been classified as discontinued operations in our consolidated financial statements. Prior period amounts have been retrospectively adjusted to conform to the current period presentation. Unless otherwise specified, disclosures in this earnings release, including the below, reflect continuing operations only and exclude the Cloud Services Business.

Fiscal Fourth Quarter 2025 Financial Highlights

• Revenues: $38.0 million, up 41% from the prior year comparable period
• Net loss attributable to common stockholders: $26.6 million, down 25% from the prior year comparable period
• Net loss attributable to common stockholders per basic and diluted share: $0.12, down 57% from the prior year comparable period
• Adjusted net loss attributable to common stockholders: $7.6 million
• Adjusted net loss attributable to common stockholders per diluted share: $0.03
• Adjusted EBITDA: $1.0 million

Fiscal Year 2025 Financial Highlights

• Revenues: $144.2 million, up 6% from the prior year comparable period
• Net loss attributable to common stockholders: $161.0 million, up 118% from the prior year comparable period
• Net loss attributable to common stockholders per basic and diluted share: $0.80, up 23% from the prior year comparable period
• Adjusted net loss attributable to common stockholders: $12.5 million
• Adjusted net loss attributable to common stockholders per diluted share: $0.06
• Adjusted EBITDA: $19.6 million

Adjusted Net Loss Attributable to Common Stockholders, Adjusted Net Loss Attributable to Common Stockholders per Diluted Share, and Adjusted EBITDA are non-GAAP measures. A reconciliation of each of these Non-GAAP Measures to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States (“GAAP”) is set forth below. See “Reconciliation of GAAP to Non-GAAP Measures.”

Recent Highlights

• Announced 250MW AI Data Center Leases With CoreWeave in North Dakota - Over the approximately 15-year lease terms, Applied Digital anticipates generating approximately $7 billion in contracted revenue from the leases.
• Since the end of the fourth quarter 2025, CoreWeave exercised its option for an additional 150MW, which would bring the total capacity leased by CoreWeave to 400MW and would add approximately $4 billion in contracted revenue, which would bring total contracted revenue to approximately $11 billion for the approximately 15-year lease terms.
• Released white paper, AI Factory: A Case Study of Total Ownership, which explains how site selection in regions like the Dakotas and data center design choices can significantly reduce the long-term costs of generative AI infrastructure.
• Subsequent to fiscal year end, the Company has raised $268.9 million, from sales of shares of the Company's common stock pursuant to the June 2025 At-the-Market Sales Agreement and sale of shares of its Series G Preferred Stock.

Management Commentary

During the quarter ended May 31, 2025, we signed two transformative 15-year lease agreements with CoreWeave, an AI hyperscaler, to deliver 250 megawatts of critical IT load at our Ellendale, North Dakota data center campus ("Polaris Forge 1"). These signed lease agreements are expected to generate approximately $7 billion in contracted revenue over the approximate 15-year lease terms. Since the end of the quarter, we’re pleased to announce that CoreWeave has exercised its lease option for an additional 150 MW. When the lease is signed it would bring the total leased capacity to 400 MW of critical IT load and add approximately $4 billion in contracted revenue which would bring the total contracted revenue to approximately $11 billion. Under the option terms, the parties are expected to promptly enter into a new, third lease agreement on substantially the same terms, including the same rent and escalators, as the existing two leases, and the parties are currently finalizing that lease.

“These long-term leases mark a defining moment for Polaris Forge 1, one of North America’s most ambitious data center projects,” said Wes Cummins, Chairman and CEO of Applied Digital. “Purpose-built for artificial intelligence and high-performance computing, the campus combines massive power capacity with rapid deployment and is designed to scale up to 1 gigawatt. With the first 100 MW facility scheduled to be operational in Q4 2025, a second 150 MW facility scheduled to come online in mid-2026, and a third 150 MW facility planned for 2027, we believe Polaris Forge 1 will serve as a launchpad for the future of AI infrastructure.”

“Building on the momentum from these leases and the surging demand for AI infrastructure, we’re actively marketing our multi-gigawatt pipeline to a diverse group of customers,” said Wes Cummins, Chairman and CEO of Applied Digital. “Over the past two years, we’ve streamlined our processes, enhanced our building design for greater flexibility, and established a repeatable approach supported by a strong supply chain. As a result, we’ve reduced projected build times from 24 months to 12 to 14 months, which we believe will enable us to deliver large-scale projects faster and more efficiently.”

“At the same time, we’re highlighting the many advantages of building in the Dakotas, along with our unique design that features an innovative closed-loop, direct-to-chip cooling system. This design is expected to achieve a PUE of 1.18 and a near-zero water consumption, intended to ensure exceptional efficiency and sustainability,” Cummins added. “Combined with abundant, low-cost energy and over 200 days of naturally occurring free cooling annually, management believes a 100 MW data center customer could save up to approximately $2.7 billion over a thirty-year period as compared to the current industry data centers in other regions. Our strategic decisions in location and design are intended to position Applied Digital to grow dramatically in the Dakotas and across other regions within our pipeline.”

HPC Data Center Hosting Update

Applied Digital’s HPC Data Center Hosting business designs, builds, and operates next-generation data centers engineered to deliver massive computing power for high-performance compute (HPC) and AI applications. The Company’s first 100 MW HPC facility at the Polaris Forge 1 campus in Ellendale, North Dakota—a 369,000+ square-foot building—is expected to offer ultra-low-cost, highly efficient liquid-cooled infrastructure and remains on track to be ready for service in the second half of 2025. In addition, construction is already underway on a second 150 MW data center at the campus. With the transformative two 15-year lease agreements now in place, we believe we are advancing toward finalizing project financing to ensure long-term financial stability and support the campus’ continued growth and scalability.

“We believe the future is very bright for Applied Digital,” said Wes Cummins, Chairman and CEO. “We’ve sought to build strong relationships with nearly all major hyperscalers and demonstrate our advanced building capabilities by passing what we believe to be some of the most rigorous technical due diligence and processes imposed by them in the industry. As a result, we have established relationships with several hyperscalers, which should position us for future projects. We’re confident that our multi-gigawatt pipeline and proven design and construction expertise, combined with hyperscalers that appear to be more active than ever in securing land, power, and data center capacity, should continue to drive our growth.”

Data Center Hosting Update

Applied Digital’s Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. As of May 31, 2025, the Company’s 106 MW facility in Jamestown, N.D., and 180 MW facility in Ellendale, N.D., are operating at full capacity.

During the three months ended May 31, 2025, the Company generated $38.0 million in revenue from the Data Center Hosting Business segment, representing an increase of 41%, compared to $26.9 million during the three months ended May 31, 2024. The growth was primarily driven by increased capacity online across the Company’s Data Center Hosting facilities.

We are very pleased with our hosting business as it continues to operate more efficiently, and with Bitcoin prices hitting all-time highs, we believe demand for these services remains robust.

Cloud Services Business Update

As we announced last quarter, our Board of Directors has determined that we will be reviewing strategic options for this business. That process remains ongoing, and we will provide an update once we have more information to share with shareholders.

Financial Results for Fiscal Fourth Quarter 2025

Operating Results

Total revenues in the fiscal fourth quarter 2025 were $38.0 million compared to $26.9 million, up 41% from the fiscal fourth quarter 2024. The growth was primarily driven by increased capacity online in the Company's Data Center Hosting Business.

Cost of revenues in the fiscal fourth quarter 2025 were $30.2 million compared to $22.8 million, up 33% from the fiscal fourth quarter 2024. The increase was primarily driven by increased capacity online in the Company's Data Center Hosting Business.

Selling, general and administrative expenses in the fiscal fourth quarter 2025 were $28.1 million compared to $13.1 million, up 115% from the fiscal fourth quarter of 2024 driven by the Company’s overall business growth. This increase was due to increases of $9.4 million in stock based compensation due to accelerated vesting of certain employee stock awards and expense related to performance stock unit grants, $3.4 million in personnel expenses largely driven by increases in headcount to support the business, and $2.3 million in other expenses related to insurance premiums and computer and software expenses.

Interest expense, net in the fiscal fourth quarter 2025 was $4.5 million compared to $13.8 million, down 67%, from the fiscal fourth quarter 2024. The decrease was primarily driven by a $5.2 million decrease in related party loan interest as there were no related party loans outstanding during the fiscal fourth quarter 2025 with the remaining decrease in interest expense due to the capitalization of interest on interest bearing construction loans.

Net loss attributable to common stockholders for the fiscal fourth quarter 2025 was $26.6 million, or $0.12 per basic and diluted share. This compares to a net loss attributable to common stockholders of $35.3 million, or $0.28 per basic and diluted share for the fiscal fourth quarter of 2024.

Adjusted net loss attributable to common stockholders, a non-GAAP financial measure, for the fiscal fourth quarter 2025, was $7.6 million or adjusted net loss attributable to common stockholders per basic and diluted share of $0.03. This compares to an adjusted net loss attributable to common stockholders, a non-GAAP financial measure, of $17.6 million, or $0.14 per basic and diluted share, for the fiscal fourth quarter of 2024.

Adjusted EBITDA, a non-GAAP financial measure, for the fiscal fourth quarter 2025 was $1.0 million compared to an Adjusted EBITDA loss of $0.2 million for the fiscal fourth quarter 2024.

Financial Results for Fiscal Year Ended May 31, 2025

Operating Results

Total revenues increased $7.6 million, or 6%, from $136.6 million for the fiscal year ended May 31, 2024 to $144.2 million for the fiscal year ended May 31, 2025 which was primarily due to revenue increasing by $20.4 million due to our 180 MW Data Center Hosting Facility in Ellendale, ND operating at full capacity during the current year as opposed to the prior year when that facility experienced a power outage during the second half of fiscal year 2024. This was offset by a decrease in related party revenue of $12.8 million, driven by certain related parties terminating their contracts during the first fiscal quarter of fiscal year 2025.

Cost of revenues decreased $5.2 million, or 5%, from $106.7 million for the fiscal year ended May 31, 2024 to $101.5 million for the fiscal year ended May 31, 2025. The decrease was primarily driven by a decrease in energy costs due to more favorable pricing during the current fiscal year.

Selling, general and administrative expenses increased $38.0 million, or 85%, from $45.0 million for the fiscal year ended May 31, 2024 to $83.1 million for the fiscal year ended May 31, 2025. The increase was primarily driven by business growth, including approximately $14.5 million in higher stock-based compensation due to accelerated vesting of certain employee stock awards and the recognition of expense related to performance stock unit grants, $11.5 million in increased professional service expenses for legal support on transactions and general operations, $8.4 million in elevated personnel costs from increased headcount, and $3.7 million in additional other selling, general and administrative expenses, mainly from insurance premiums and software costs.

Gain on classification as held for sale was $24.6 million for the fiscal year ended May 31, 2025 due to the receipt of $25.0 million of funds released from escrow in association with the sale of our Garden City facility. Comparatively, there was a $15.4 million loss on classification as held for sale due to the write down of the Garden City assets to their fair market value as part of the planned sale of that facility during the fiscal year ended May 31, 2024.

Interest expense, net decreased $3.0 million, or 17%, from $17.7 million for the fiscal year ended May 31, 2024 to $14.7 million for the fiscal year ended May 31, 2025. The decrease was primarily driven by a $5.7 million decrease in related party loan interest as there were no related party loans outstanding during the fiscal year ended May 31, 2025, as well as an increase of $2.2 million in interest income due to an increase in funds held in money market accounts. This was partially offset by an increase of approximately $4.9 million of interest expense due to the increase in finance leases and debt obligations between periods.

Loss on conversion of debt was $33.6 million for the fiscal year ended May 31, 2025, due to the difference in the fair value compared to the price at which the Yorkville Promissory Notes (the "YA Notes") were converted. There was no such activity recorded in the prior year comparative period.

Loss on change in fair value of debt increased $78.0 million, or 1,054%, from $7.4 million for the fiscal year ended May 31, 2024 to $85.4 million for the fiscal year ended May 31, 2025. The loss on change in fair value of debt for the fiscal year ended May 31, 2025 was primarily due to a loss of approximately $89.6 million related to the change in fair value of the conversion option derivative of the 2.75% Senior Unsecured Convertible Notes during the two week period in which we did not have sufficient authorized shares to settle such conversion fully in shares. This loss was partially offset by a gain of approximately $4.1 million related to the change in the fair value of the YA Notes. The loss on change in fair value of debt for the fiscal year ended May 31, 2024 was due to the valuation associated with our borrowings under the YA Notes.

Net loss attributable to common stockholders was $161.0 million, or $0.80 per basic and diluted share, for the fiscal year ended May 31, 2025. This compares to a net loss attributable to common stockholders of $74.0 million, or $0.65 per basic and diluted share, for the fiscal year ended May 31, 2024.

Adjusted net loss attributable to common stockholders was $12.5 million or $0.06 per diluted share for the fiscal year ended May 31, 2025. This compares to an adjusted net loss attributable to common stockholders of $12.7 million, or $0.11 per basic and diluted share, for the fiscal year ended May 31, 2024.

Balance Sheet

As of May 31, 2025, the Company had $120.9 million in cash, cash equivalents, and restricted cash, along with $688.2 million in debt.

Conference Call

As previously announced, Applied Digital will host a conference call today, July 30, 2025, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow the management’s presentation.

Participant Dial-In: 1-800-549-8228

Conference ID: 67205

The conference call will be broadcast live and available for replay for one year here.

Please call the conference telephone number approximately 10 minutes before the start time. An operator will register your name and organization. If you have difficulty connecting with the conference call, please get in touch with Applied Digital’s investor relations team at 1-949-574-3860.

A phone replay of the call will also be available from 8:00 p.m. Eastern Time on July 30, 2025, through August 7, 2025, at 11:59 p.m. Eastern Time.

Replay Dial-In: 1-888-660-6264

Playback Passcode: 67205#

About Applied Digital

Applied Digital Corporation (Nasdaq: APLD) designs, develops, and operates next-generation digital infrastructure across North America to provide digital infrastructure solutions and cloud services to the rapidly growing industries of High-Performance Compute ("HPC") and Artificial Intelligence ("AI"). Find more information at www.applieddigital.com. Follow us on X (formerly Twitter) at @APLDdigital.

Forward-Looking Statements

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives and the closing of the transaction described herein. These statements use words, and variations of words, such as “will,” “continue,” “build,” “future,” “increase,” “drive,” “believe,” “look,” “ahead,” “confident,” “deliver,” “outlook,” “expect,” “project” and “predict.” Other examples of forward-looking statements may include, but are not limited to, (i) statements that reflect perspectives and expectations regarding the datacenter leases and the Polaris Forge 1 campus development, including statements regarding expected timeline of operating readiness and construction completion with respect to various Polaris Forge 1 facilities, (ii) statements about the high performance compute industry, (iii) statements of Company plans and objectives, including our evolving business model, or estimates or predictions of actions by suppliers, (iv) statements of future economic performance, (v) statements of assumptions underlying other statements and statements about the Company or its business and (vi) the Company’s plans to obtain future financing. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the Company’s expectations and projections. These risks, uncertainties, and other factors include: our ability to complete construction of the Polaris Forge 1 HPC data centers; our ability to finalize and execute the new, third lease with CoreWeave pursuant to its option exercise; our ability to raise additional capital to fund the ongoing data center construction and operations; our dependence on principal customers, including our ability to execute leases with key customers, including leases for our Polaris Forge 1 campus; our ability to timely and successfully build new hosting facilities with the appropriate contractual margins and efficiencies; power or other supply disruptions and equipment failures; the inability to comply with regulations, developments and changes in regulations; cash flow and access to capital; availability of financing to continue to grow our business; decline in demand for our products and services; and maintenance of third party relationships. Information in this release is as of the dates and time periods indicated herein, and the Company does not undertake to update any of the information contained in these materials, except as required by law.

Use and Reconciliation of Non-GAAP Financial Measures

To supplement our consolidated financial statements presented under GAAP, we are presenting certain non-GAAP financial measures. We are providing these non-GAAP financial measures to disclose additional information to facilitate the comparison of past and present operations by providing perspective on results absent one-time or significant non-cash items. We utilize these measures in the business planning process to understand expected operating performance and to evaluate results against those expectations. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results, provide management and investors with an additional understanding of our business operating results regarding factors and trends affecting our business and provide a reasonable basis for comparing our ongoing results of operations.

These non-GAAP financial measures are provided as supplemental measures to the Company’s performance measures calculated in accordance with GAAP and therefore, are not intended to be considered in isolation or as a substitute for comparable GAAP measures. Further, these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Because of the non-standardized definitions of non-GAAP financial measures, we caution investors that the non-GAAP financial measures as used by us in this Annual Report on Form 10-K have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Further, investors should be aware that when evaluating these non-GAAP financial measures, these measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, from time to time in the future there may be items that we may exclude for purposes of our non-GAAP financial measures and we may in the future cease to exclude other items that we have historically excluded for purposes of our non-GAAP financial measures. Likewise, we may determine to modify the nature of the adjustments to arrive at our non-GAAP financial measures. Investors should review the non-GAAP reconciliations provided below and not rely on any single financial measure to evaluate the Company’s business.

Adjusted Operating (Loss) Income, Adjusted Net Loss From Continuing Operations Attributable to Common Stockholders, and Adjusted Net Loss From Continuing Operations Attributable to Common Stockholders per Diluted Share

“Adjusted Operating (Loss) Income” and “Adjusted net loss from continuing operations attributable to common stockholders” are non-GAAP financial measures that represent operating loss and net loss from continuing operations attributable to common stockholders, respectively. Adjusted Operating (Loss) Income is Operating loss excluding stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, loss on abandonment of assets, (gain) loss on classification as held for sale, accelerated depreciation and amortization, loss on legal settlement, restructuring expenses and other non-recurring expenses that Management believes are not representative of the Company's expected ongoing costs. Adjusted net loss from continuing operations attributable to common stockholders is Adjusted Operating (Loss) Income further adjusted for the loss on conversion of debt, loss on change in fair value of debt and related party debt, respectively, loss on fair value of warrants and warrants issued to related parties, respectively, loss on extinguishment of debt and related party debt, respectively, and preferred dividends. We define “Adjusted net loss from continuing operations attributable to common stockholders per diluted share” as Adjusted net loss from continuing operations attributable to common stockholders divided by weighted average diluted share count.

EBITDA and Adjusted EBITDA

“EBITDA” is defined as earnings before interest expense, net, income tax expense, and depreciation and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for stock-based compensation, non-recurring repair expenses, diligence, acquisition, disposition and integration expenses, litigation expenses, (gain) loss on classification as held for sale, loss on abandonment of assets, loss on conversion of debt, loss on change in fair value of debt and related party debt, respectively, loss on change in fair value of warrants and warrants issued to related parties, respectively, loss on extinguishment of debt and related party debt, respectively, loss on legal settlement, preferred dividends, restructuring expenses and other non-recurring expenses that Management believes are not representative of our expected ongoing costs.   

Released July 30, 2025